Dogecoin Price Drop: Rebound Soon or More Pain Ahead?
Dogecoin has fallen 6% in the last 24 hours following a market wide selloff. Bitcoin has broken below $84,000 adding to selling pressure...
Dogecoin has fallen 6% in the last 24 hours following a market wide selloff. Bitcoin has broken below $84,000 adding to selling pressure on altcoins.
Several macro and market related factors are causing Dogecoin’s price to move.
Dogecoin Finds Key Support
Dogecoin is currently at $0.20 and analysts are saying it follows a familiar pattern of corrections before bounces.
Crypto analyst Bithereum has identified a falling wedge and is predicting a drop to $0.20197 which is a level that has been seen before bull reversals. If this pattern holds Dogecoin could be targeting $0.45 soon.
#Dogecoin $DOGE network activity has declined by 95%, dropping from 2.66 million active addresses in November to just 130,282 today @elonmusk ! Love is something else 😉
— Schelle385 (@schelle385) February 27, 2025
Additional bearishness comes from declining network activity:
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New addresses on the Dogecoin network: Down from 1.29 million in November to 30,815.
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Less investor participation: Weakening buying pressure and adding to the downside.
Despite all this analysts think a breakout could be imminent if Dogecoin holds support.
Trump’s EU Tariff Causes Crypto Selloff
Dogecoin is falling with global economic uncertainty caused by former U.S. President Donald Trump’s announcement of a 25% tariff on the European Union.
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“We have made a decision, and we’ll be announcing it very soon. It’ll be 25%”, Trump said in a cabinet meeting, per the Financial Times.
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After the announcement Bitcoin dropped below $84,000 and the crypto market followed.
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Dogecoin fell 6% as traders reacted to the economic concerns.
This trade war fear is causing more selling from big investors which could push Dogecoin back down before stabilizing.
$DOGE taking a hit, dropping to $0.2 with analysts eyeing a possible dip to $0.15. Market looking shaky, meme coin lovers better buckle up. Eyes on $BTC and $ETH for any signs of a turnaround. #Dogecoin #CryptoCrash #Altcoins
— Smelly Rino (@smellyrino) February 26, 2025
Dogecoin Could Be Setting Up for a Bounce
Despite the price drop technicals are saying Dogecoin could reverse.
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TD Sequential on the daily chart has flashed a buy signal which means upcoming upside.* Trader Tardigrade sees a similar pattern to Dogecoin’s 2017-2018 run and DOGE could go to $1.70 if this continues.
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Master Kenobi says Dogecoin is above a key trend line that has acted as support in the past.
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RSI is at its lowest since March 2023 which means selling pressure is fading.
Analysts have identified key levels that will determine Dogecoin’s next move. If Dogecoin holds at $0.20 it could bounce to $0.30998, $0.37154, $0.45918 in the coming weeks.
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